Transforming health benefits for hospitals and healthcare systems with ICHRA

ICHRA+ empowers hospitals to manage rising benefits costs, enhance employee choice, and simplify administration across complex staffing models.

The hospital industry, known for its demanding work environment, faces unique challenges when it comes to retaining talent and providing competitive and flexible health benefits.

Many hospitals self-fund their group health plans in an effort to maintain more control over health benefit costs. But high claim volume from their workforce can defeat the purpose. This is where an individual coverage health reimbursement arrangement (ICHRA) can flip the script.

With the help of Remodel Health, a leading ICHRA provider, hospitals can harness ICHRA’s potential to tackle these issues efficiently.

Understanding ICHRA

Introduced in 2020, ICHRA allows employers like healthcare organizations to provide tax-free contributions to employees for their individual health insurance premiums. Unlike traditional group health plans, ICHRA offers flexibility and personalization, empowering hospitals and employees alike. With this group health benefit, hospitals can provide a fixed contribution for employees to purchase their own health coverage instead of funding unpredictable claims year after year.

Here’s how it works:

You offer your staff a tax-free monthly contribution. Remodel Health’s 2024 ICHRA Report found that the average monthly allowance offered by applicable large employers (ALEs) is $448. With no annual limits on contributions, you can offer your staff as much as you’d like. You can also vary allowances by age, family size, and employee class.
Your employees buy their own individual health insurance plans. Employees choose their own individual health plan and pay their premiums using your contribution. For example, if you offer your employee a $500 monthly allowance, and they pick a plan with a $500 monthly premium, the cost of their coverage is fully covered. If they pick a more expensive plan, they pay the difference out of their own pocket.

Employer satisfaction with ICHRA is apparent, as shown by data from the HRA Council, which indicates a 21% rise in adoption rates from 2024 to 2025.

Let’s review why hospitals are switching from a traditional group health insurance plan to Remodel Health’s ICHRA+ platform.

Why ICHRA works for hospitals

Cost predictability

The average cost of employer-sponsored health insurance in the U.S. is rising each year. With higher rates on the horizon, hospitals are seeking innovative solutions to manage their health benefit expenses while maintaining competitive offerings.

ICHRA provides a solution by allowing hospitals to set defined contribution amounts, giving them complete control over their benefits budget. You can adjust contributions based on employee needs and organizational budget constraints, effectively managing costs.

Flexible coverage options

Group health insurance plans are one-size-fits-all, yet your workforce is diverse, from nurses to administrative staff. Your employees deserve coverage that matches their individual needs. ICHRA gives your employees the power to choose the health plans that suit them best.

Recruitment and retention

According to Remodel Health’s 2024 Employee Benefits Survey, health insurance is the most sought-after employee benefit. Results show that 92% of employees consider health benefits important. With an ICHRA, you can provide comprehensive health coverage without straining your budget. Plus, the personalization it provides adds another layer of employee satisfaction.

Simplified administration

Administrative complexity is often a significant hurdle in benefits management. Remodel Health’s white-glove customer service and ICHRA+ software platform simplify this process for hospitals. You can also integrate your ICHRA benefits with participating payroll providers and HRIS systems to reduce complexity.

Our team of experts handles:

Onboarding and support
Plan design
Legal plan documents
AutoPay for employee individual health insurance premiums
Required ICHRA plan notices
Providing necessary data for compliance filings

This not only reduces your hospital’s administrative burden but also enhances the overall efficiency of managing your benefits.

Straightforward shopping experience

Your employees can shop for individual plans directly through their Remodel Health account.

We simplify the shopping experience for your employees. Instead of navigating the process on their own, they can easily compare their options for off-exchange health plans directly through our ICHRA+ platform. We also have licensed benefit advisors available to guide your staff through their options.

Success stories

Numerous hospital groups have already seen success by offering an ICHRA through Remodel Health. By shifting from traditional benefits to a tailored alternative, these institutions have achieved significant cost reductions while continuing to provide comprehensive benefits for their employees.

Why Remodel Health

Enterprise-ready expertise: Remodel Health specializes in serving organizations with 100+ employees.
Seamless technology: Our advanced ICHRA+ platform integrates with more than 200 payroll and HRIS systems.
Comprehensive support: Our dedicated account managers and expert service team deliver an unmatched client and employee experience.
Proven outcomes: With a 95% customer retention rate, Remodel Health has a track record of delivering results.

Are you ready to transform your health benefits?

ICHRA presents an innovative solution for the hospital industry, offering a personalized and adaptable approach to health benefits. It provides unparalleled flexibility and satisfaction, which can play a critical role in improving job satisfaction and reducing turnover rates among healthcare workers. At Remodel Health, our team of experts is dedicated to ensuring your ICHRA strategy works now and in the future.